MFA Musings: 8/20/18

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It is exciting to talk about the new loan and lease loss reserve process that is called Current Expected Credit Loss (CECL) which is why everyone keeps asking for more information!

*A disclaimer:
People who sell products to people are product salespeople. Positions which will probably be replaced by Amazon or Wall Mart.

All of us at McQueen Financial feel that we are partners with our clients focused on your long-term success.

Focusing on the long-term success of you, our partners, we have the following recommendations on CECL:

If you are a PBE (large publicly traded bank), you need to get it in place soon.

If you are not a PBE, you have a lot of time. CECL implementation is now in 2022.

It is a good time to start thinking about CECL; you have time to research and determine how you are going to implement the solution. Why?

A number of core processors announced that they will have a CECL model:

You can use a spreadsheet;

There will be inexpensive options to do this in-house;

There are several inexpensive outsource solutions;

We have a great CECL solution.

We have heard a few sales pitches from industry participants telling people that CECL is too complex to do in-house or on a spreadsheet thus you need to hire them. This is not true. You have many options.

Contact your advisor to discuss options for CECL. All of us at McQueen Financial are dedicated to your long-term success.